Trucking And Transit Insurance FAQ

• At the minimum, trucking and transit businesses need general liability insurance.
• If they have employees they will need workers compensation in most states.
• If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
• There are also other specialty coverages and endorsements that might be needed based on their operations.

Package policies are the most convenient way to combine two or more coverage parts into a single policy. Package policies may include automobile, but most businesses in this category place their automobile separately from the rest of its coverage. The Businessowners Policy is not an option for businesses within this category.

Types Of Trucking And Transit Package Policies:

• Commercial Package Policy (CPP)

Terminals represent the major property exposure for a trucking concern and usually consist of office and dispatch equipment, goods and merchandise of others in transit and garage repair operations.

Time element coverage issues include not only business income for direct damage at the terminal but also the extra expenses needed to support vehicles on the road after a loss. They also include loss of income because of a covered direct damage loss at a major customer or a parts and equipment supplier.

Types Of Property Coverages:

• Building
• Business Personal Property
• Personal Property of Others
• Improvements and Betterments

Motor truck cargo legal liability coverage for motor carriers is far and away the single most important inland marine coverage for this industry. However, other property vital to the continued operation of transporters must also be covered and some of that property may be eligible for coverage by one or more of the forms listed below:

Types Of Inland Marine Coverages:

• Accounts Receivable Coverage
• Bailee Customers Coverage
• Difference in Conditions (DIC) Coverage
• Electronic Data Processing Equipment Coverage
• Motor Truck Cargo Legal Liability Coverage
• Valuable Papers and Records Coverage

Employee theft of insured property or property of others is the most significant crime exposure for most transit companies. However, computer fraud, extortion and kidnap and ransom coverages should also be considered because of the loss situations that might arise for which they provide coverage.

Motor carrier operations with employees having regular access to clients' premises should consider adding clients' property coverage as well. Fraudulent impersonation coverage is a new coverage that can cover losses due to trickery.

Types Of Crime Coverages:

• Computer and Funds Transfer Fraud Coverage
• Employee Theft Coverage
• Forgery or Alteration Coverage
• Inside The Premises-Theft of Money and Securities Coverage
• Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
• Money Orders and Counterfeit Money Coverage
• Outside The Premises Coverage

Surety bonds are sometimes used in place of some inland marine coverages. In other cases they are used because of requirements related to supply contracts, licenses and permits.

Types Of Surety Coverages:

• Contract-Performance of Service or Supply Bonds
• License and Permit Bonds
• Miscellaneous Surety Bonds

Liability exposures directly involving the transport specialist are covered under the automobile or the protection and indemnity policy. However, there are other employees and exposures that can only be covered by the commercial general liability policy.

Types Of Liability Coverages:

• Commercial General Liability (CGL) Coverage
• Employee Benefits Liability Coverage
• Employment-Related Practices Coverage

Ambulances are included within this category. Coverage will be needed for the exposures of health care professionals who are responding to the emergency medical needs of individuals they are transporting. The exposures of the individual EMT or other type of health care provider and the named insured operation that is providing the service must be protected.

Types Of Errors And Omissions (E&O) Coverages:

• Miscellaneous Medical Professional Liability Insurance Coverage

The trucking and transportation industry has some very specific coverages requirements that are best addressed through coverage forms developed specifically for truckers and motor carriers. Other classifications may also need unique endorsements that have been developed.

Types Of Business Auto Coverages:

• Auto Medical Payments
• Bobtail or Deadheading Liability Coverage
• Business Auto Coverage
• Collision Coverage
• Comprehensive Coverage
• Federal Motor Carrier Safety Administration (FMCSA) Endorsements
• Hired & Non-owned Auto Coverage (HNOA)
• Intrastate Supervision
• Motor Carrier Coverage Form
• Public and Contract Carriers
• Uninsured/Underinsured Motorists Coverage

Employers are required to provide coverage for on-the-job injuries sustained by their employees through a workers compensation policy. The question always arises as to who is an employee. Many transport specialists rely on independent contractors to move the goods for them. This then leads to the next question as to whether or not the independent contractor should be covered under the transport specialist's workers compensation policy.

Types Of Workers Comp Coverages:

• Stop-Gap or Employers Liability Coverage
• Voluntary Compensation
• Workers Compensation and Employers Liability Coverage

All transport specialists should carry considerably higher limits above their primary liability coverage limits. This is because any loss involving a transport vehicle will be expensive. There is also the potential of damage to infrastructure such as bridges and overpasses that can cost millions to repair and result in loss-of-use lawsuits.

Types Of Excess Liability Coverages:

• Bumbershoot Liability Coverage
• Excess Liability Coverage
• Umbrella Coverage

Ferry operators have waterborne exposures that can be covered only by ocean marine coverages. The hull coverage combined with the protection and indemnity coverage will provide protection for on-water exposure but on-land coverage will still be needed.

Types Of Ocean Marine Coverages:

• Ocean Marine Hull Coverage
• Protection and Indemnity Coverage

Environmental and pollution liability issues are important areas of concern for any operation performing its own maintenance on premises. Drones are a new technology that is being incorporated in many aspects of transit. It is important to identify if a client is using drone services or owns its own fleet of drones. A thorough review of all exposures and operations performed by the trucker may reveal the need for one or more of the following coverages:

Types Of Specialty Coverages:

• Business Legal Expense Coverage
• Cyber Liability Coverage
• Data Security Breach Coverage
• Directors and Officers Liability Coverage
• Environmental Impairment Liability Coverage
• Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
• Identity Theft Insurance Coverage
• Risk Retention Group Liability Coverage
• Solar Energy System Coverage
• Tax Liability Coverage
• Transportation Brokers Contingent Cargo Coverage
• Underground Storage Tank (UST) Liability Coverage
• Unmanned Aerial Vehicles (UAV) (Drones)